Private Debt: Opportunities in Corporate Direct Lending by Stephen L Nesbitt


Private Debt: Opportunities in Corporate Direct Lending
Title : Private Debt: Opportunities in Corporate Direct Lending
Author :
Rating :
ISBN : 1119501156
ISBN-10 : 978-1119501152
Language : English
Format Type : Kindle, Pasta dura
Number of Pages : 256 pages
Publication : Wiley

The essential resource for navigating the growing direct loan market Private Debt: Opportunities in Corporate Direct Lending provides investors with a single, comprehensive resource for understanding this asset class amidst an environment of tremendous growth. Traditionally a niche asset class pre crisis, corporate direct lending has become an increasingly important allocation for institutional investorsassets managed by Business Development Company structures, which represent 25% of the asset class, have experienced over 600% growth since 2008 to become a $91 billion market. Middle market direct lending has traditionally been relegated to commercial banks, but onerous Dodd Frank regulation has opened the opportunity for private asset managers to replace banks as corporate lenders; as direct loans have thus far escaped the low rates that decimate yield, this asset class has become an increasingly attractive option for institutional and retail investors. This book dissects direct loans as a class, providing the critical background information needed in order to work effectively with these assets. Understand direct lending as an asset class, and the different types of loans available Examine the opportunities, potential risks, and historical yield Delve into various loan investment vehicles, including the Business Development Company structure Learn how to structure a direct loan portfolio, and where it fits within your total portfolio The rapid rise of direct lending left a knowledge gap surrounding these nontraditional assets, leaving many investors ill equipped to take full advantage of ever increasing growth.This book provides a uniquely comprehensive guide to corporate direct lending, acting as both crash course and desk reference to facilitate smart investment decision making.

Private Debt: Opportunities in Corporate Direct Lending Reviews

  • Zalan Cseresznyes

    Great book, a little bit short, contains a lot of "common knowledge", which I didn't like because the topic is intermediate/advanced, and it mixes with a lot of beginner materials. Great structure overall.

  • Sebastien Elbied

    Good tool to understand corporate direct lending.

  • goodreads Customer

    The book is well written and informative but this is of a textbook. It is loaded with mathematical formulas explaining how interest rates are determined, how fees are calculated, and other theoretical information.Here are a couple random samples:Page 34, 2nd paragraph: "Leveraged loan yields are show in the lower shortened line in Exhibit 4.4 and go back to December 31, 2012, when the were first available. As expected, direct loans have a consistently higher yield spread against leveraged loans compared to high yield bonds. At year end, December 31, 2017, the CDLI yield spread against leveraged loans equaled 5.92% compared to 5.19% for high yield bonds. Yield comparisons to leveraged loans is likely a fairer comparison but the popularity of high yield bonds brings demand for comparisons as well."Page 128, 4th paragraph: "The integrity of direct loan valuations can be tested by measuring serial correlations of various time lags for direct lending quarterly returns. Quarterly CDLI price returns, not total returns, are used because valuation impacts change in price but not in income. The CDLI quarterly price return equals realized plus unrealized capital gains (losses) divided by net asset value."Not trying to knock or discredit the author or this book. I was looking for of a 'how to' book with case studies, sources of capital that provide corporate financing but this book does not have any of that its just not what I was looking and hoping for.

  • Norman B. Tweed Jr.

    This wonderful book gives one a feel for mid market credit investing. Direct loans, baby bonds, CLOs, and credit instruments in general are covered. Some flavor of asset manager selection is also covered.

  • ES

    Great book for better understanding the fundamentals and benefits of direct lending